Localfund.com - All about Fund and Investment
*Home>>>Income Fund

I am a Sole Proprietor and recently created and Employment Identifictation Number, how do I pay taxes?


I'm New to the Game and would appreciate some advice:

I know that as a Sole Proprietor, I can add my business earnings to my personal earnings and report everything to IRS as individual income; however, if my business earnings are reported under my Employment Identification Number to IRS and my W2 earnings are reported under my Social Security Number, how do I formally report both as individual income to make sure that IRS is aware of the sources of funding?

Also, if I have Short Term Stock gains and Business Earnings how do I report both using the Estimated Capital Gains forms. Do I need separate forms for each SSN and EIN, or can I just add everything together and pay it under SSN?

I would greatly appreciate a knowledgeable answer here. No guesses please. I'll do my own research anyway..but wanted to get a head start. Thank You.

If you have employees, and/or if you are selling something that would be subject to sales tax, make sure that you get hooked up into your state's tax system as well as the federal. Make sure you understand the taxes you are required to collect from your employees and customers, and taxes and fees that you owe the government. If you fail to file returns or collect the appropriate amounts you could end up owing a LOT in penalties.

Consulting a CPA might be wise, rather than trying to figure it all out yourself, if you are in these areas.

it's all broken down on your forms. you file a schedule c for your business expenses

I am a Sole Proprieter also. I have been doing my taxes myself for the past several years. You can file all your income together on on form 1040. The great part is you don't even need an EIN. The IRS recognizes your SSN as the same thing as an EIN. If you are going to do your own taxes, I would strongly recommend considering Turbo Tax. I have used several different types of tax software and Turbo Tax has been the best by far. Their results are guaranteed.You don't even have to know anything about taxes, it has step by step instructions a child could follow. They have also gotten me back more money than any other software or CPA I used prior to their product. Hope this helps you and good luck with your business.

First, your S.E. income will be reported on Schedule C. You will enter the Fed Emp. ID Number on that schedule in the box indicated. The W-2 is reported as always.
S-T gains will be reported on Schedule D. No separation is necessary unless they are different classification (Long-term vs short-term). Business gains and losses are reported on a different form, but will flow to Schedule D and then to your 1040. Good luck!

you have to file a schedule C

Tags
  Investment Account   Invest Money   Invest in Gold   Invest Fund   Income Fund   HYIP   High Yield   Hedge Fund
Related information
  • Prosper.com LENDERS: I am a high risk credit grade, trying to borrow $1000 for childs college tuition with?

    Hello friend good luck on your Loan search... Beware of Advance fee Loan scams. LOAN SCAM - Do Not Pay UpFront Fees. Do not send money UpFront via Western Union or MoneyGram to any person or ...

  • Should I sell my Townhome (TH) in the DC Metro area?

    First why do you not look into refinancing. If I understand you corrently you have about 35% to 45% equity in your TH. What you can do is look into a 3 or 5 year adustable rate mortgage. This wa...

  • Has anyone seen this IRS Atlanta? Could be the reason for delays?

    No, I haven't seen this and thank you for sharing this information. :)

    ...
  • Advice on Investing for a 25 year old?

    From what I understand from what you have presented, I suggest that you establish a ROTH account for your wife. Establish it in one of the mutual funds with which you are familiar. I suggest you ...

  • How do you make 拢500 double in a short space of time?

    go and buy a car from ebay clean it service it and advertise it for a higher price buy cheap girly cars that will sell easily

    ...
  • Real Estate too high?

    As an investor you should understand economics. It is all supply and demand. An afford-ably priced home exists for you except it is located elsewhere where the demand is less. I know you don'...

  • Tax question: first time homeowner and grad student?

    A gift isn't taxable to the recipient, and $5000 is well under the limit where the giver has to report it either. No, you don't claim this on your taxes. Hope credit is not available ...

  • Can I rollover my 401k to a similar account outside US due to my job transfer?

    When you take a distribution from the 401k, taxes will be due unless you roll it over to another plan qualified under the IRS code. Foreign retirement accounts are not qualified plans, so this tra...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster